Q1. Answer the following related to the Computation of the value of Goodwill and capital adjustment: (Answer all the questions)

a) Total capital of all the partners of a firm is Rs. 20,00,000. During the year ended 31^st March, 2020 the firm earned a Profit of Rs. 2,50,000. The normal rate of return is 10%. What will be the value of goodwill of the firm by Capitalisation Method?

1. Rs. 25,00,000
2. Rs. 50,00,000
3. Rs. 20,00,000
4. Rs. 50,000

b) A and B who are in a partnership sharing profits and losses in the ratio of 3:2 admit C as a partner who contributes Rs. 50,000 as capital for 1/5^th share of profits. The Capitals of A after adjustments is Rs. 80,000. The capital accounts of old partners are to be adjusted on the basis of the proportion of Cs capital to his share in the business. In this case A will

1. Rs. 40,000 (withdraw)
2. Rs. 4,000 (bring in)
3. Rs. 1,20,000 (withdraw)
4. Rs. 1,20,000 (bring in)

c) A and B are in partnership sharing profits and losses equally. The capitals of A and B after adjustments are Rs. 1,00,000 and Rs. 60,000 respectively. Calculate incoming partners proportionate capital, if he is admitted for 1/5^th share.

1. Rs. 1,60,000
2. Rs. 80,000
3. Rs. 40,000
4. Rs. 2,00,000

Please answer all